Quality Management Exam 2

What does PDCA stand for?

Plan–Do–Check–Act, the continuous improvement cycle.

What does TQM stand for?

Total Quality Management.

What does ROI measure?

Return on Investment.

What does ROVA stand for?

Return on Value Added.

What does COQ stand for?

Cost of Quality.

What does the PAF model represent?

Prevention, Appraisal, Failure categories of COQ.

What are Prevention Costs?

Costs to avoid defects (training, planning, error-proofing).

What are Appraisal Costs?

Costs to evaluate product or service quality (inspection, audits).

What are Internal Failure Costs?

Costs from defects found before reaching the customer (rework, scrap).

What are External Failure Costs?

Costs from defects found after reaching the customer (warranty, returns).

What is Effectiveness?

Doing the right things to meet objectives.

What is Efficiency?

Achieving outputs with minimal inputs.

What is Productivity?

Ratio of outputs to inputs.

What are the Four Levels of Measurement?

Strategic, Tactical, Process, and Operational levels.

What are the EFQM Enabler categories?

Leadership, Strategy, People, Partnerships & Resources, Processes.

What are the EFQM Results categories?

Customer Results, People Results, Society Results, Business Results.

What does RADAR stand for?

Results, Approach, Deployment, Assessment, Review.

What are the 5 main stakeholder groups?

Customers, Employees, Suppliers/Partners, Society, Investors/Owners.

What are the maturity levels in CMMI?

Initial, Managed, Defined, Quantitatively Managed, Optimizing.

What is a First-party audit?

An internal audit conducted by the organization.

What is a Second-party audit?

An audit conducted by a customer on a supplier.

What is a Third-party audit?

An independent audit by a certification body (e.g., ISO).

What is benchmarking?

A structured comparison with others to identify performance gaps and best practices.

What are the 4 categories of benchmarking?

Internal, Competitive, Functional, Generic.

What is a quick win?

A small, easy, low-cost improvement.

What is a step-change (breakthrough) improvement?

A major, transformative improvement.

How is a stakeholder defined?

Anyone who affects or is affected by change.

What is SIPOC?

A high-level map of Suppliers, Inputs, Process, Outputs, Customers.

What does a rectangle represent in a flowchart?

A process/activity step.

What does a diamond represent in a flowchart?

A decision point.

What does an oval represent in a flowchart?

The start or end of a process.

What does APQC stand for?

American Productivity & Quality Center (known for process classification framework).

What are Operating processes in APQC?

Core value-creating processes (e.g., production, delivery).

What are Management & Support processes?

HR, finance, IT, admin processes supporting the organization.

What is the perspective of process management?

Cross-functional view focusing on end-to-end value flow.

Who is the Process Owner?

The individual responsible for process performance and improvement.

What are the 7 forms of waste in Lean?

Overproduction, Waiting, Transportation, Extra Processing, Inventory, Motion, Defects.

What is a perfect process in Lean?

One with zero waste and continuous value flow.

What is Business Process Reengineering (BPR)?

Radical redesign of processes for major improvement.

How does IT drive BPR?

By enabling new workflows, automation, and integration.

What is continuous improvement?

Small, incremental improvements over time.

What is discontinuous (step-change) improvement?

Radical, breakthrough changes (often BPR).

What is assumption busting?

Challenging underlying assumptions to inspire innovative solutions.